Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q4 2012 Earnings Presentation
25 slides from Magyar Telekom Telecommunications's earnings presentation, February 2013
Slide 1: Investor presentation – Magyar Telekom Group – February 2013
Investor presentation M Magyar Telekom T l k Group G – February F b 2013 Revenue target exceeded, EBITDA towards the better end g of the targeted range g 1
Slide 2: Strategy, Outlook and Guidance
Strategy, Outlook and Guidance 2
Slide 3: Overview – Magyar Telekom Group at a glance
Overview – Magyar Telekom Group at a glance International presence Overview Czech Republic Slovakia Austria Leading telecommunications operator in Hungary, Moldova Hungary Slovenia Croatia Macedonia and Montenegro Croatia Romania BiH Serbia S bi Serbia Montenegro Kosovo Bulgaria Bulgaria Albania Mac
Slide 4: Hungarian economic environment
Hungarian economic environment Growth structure and wages Contribution to GDP growth (%) Economic challenges 8 0.5% 6 Economic downturn coupled with a high rate 4 off inflation i fl i 2 GDP performance dependent on 0 export dynamics -2 continued decline in household -4 spending due to the weaken
Slide 5: Market positions on the Hungarian telecommunication market
Market positions on the Hungarian telecommunication market Mobile voice market shares (based on total SIMs) Mobile broadband market shares (based on total SIMs) Subscribers Subscribers 15,000,000 3,500,000 3,000,000 12 000 000 12,000,000 25 9% 25.9% 22.4% 23.0% 22.8% 2,500,000 9,000,000 Vodafone 2,0
Slide 6: Hungarian ICT revenue trends
Hungarian ICT revenue trends Hungarian ICT market development (HUF bn) ICT market 1.7% 1,233 1,256 1,279 Hungarian ICT market is expected to 1,210 1,159 1,171 1,186 expand wider economic recovery, when IT it comes,, is expected p to increase total market size Fixed data CAGR of ca. 2% expected T
Slide 7: Magyar Telekom's revenue mix
Magyar Telekom’s revenue mix T Transformation f ti off Magyar M Telekom’s T l k ’ H Hungarian i revenue mix i 100% Revenue turnaround 80% New N New Significant Si ifi t revenue potential t ti l ffrom non-core revenue sources revenue New activities sources ca.30% revenue 60% ca.45% sources revenues
Slide 8: Opex and Capex developments
Opex and Capex developments C t structure Cost t t C Capex structure t t HUF bn HUF bn 15% 14% 15% Capex/Sales 250 -3% 100 92 92 213 84 204 203 200 22% 75 33% 32% 44% 45% 46% 150 30% 50 33% 100 36% 11% 25 9% 56% 55% 54% 10% 50 37% 25% 22% 0 0 2010 2011 2012 2010 2011 2012*** Employee-related expense
Slide 9: Free cash flow and dividends
Free cash flow and dividends Free cash flow* flow generation Dividend payment HUF bn Net debt ratio** DPS (HUF) 120 50% 80 26 70 100 40% 28 34.1% 34.3% 60 14 32.7% 30.8% Target 80 33 14 30% 50 12 60 40 16 74 20% 30 40 78 50 50 69 65 20 46 10% 20 10 0 0% 0 2009 2010 2011 2012 2009 2010 2011 2012 Spec
Slide 10: Public targets for 2013
Public targets for 2013 2013 targets 2012 results Flat to -3% +1.6% R Revenue s results l pressure on real disposable income to lead to a further decline in household consumption spending power in the business sector is expected to remain limited shortfall of Pro-M revenues Reported EBITDA 4-7
Slide 11: 2012 Group results – Revenues and EBITDA
2012 Group results – Revenues and EBITDA Groupp revenues Groupp EBITDA HUF bn HUF bn Underlying performance 610 21.0 1.3 607.1 210 9.4 -17.2 600 597.6 -9.3 205 -13.2 200 590 5.7 196.1 3.1 194.8 2.6 195 580 3.8 1.6 -4.5 3.7 2.1 190 -2.0 570 185 0 0 2011 Mobile Fixed Fixed M. non- Mobile TV SI/IT Ener
Slide 12: Q4 2012 Results
Q4 2012 Results 12
Slide 13: Telekom Hungary – Financial performance
Telekom Hungary – Financial performance T l k H Telekom Hungary revenues +6% HUF million 111,428 118,004 120,000 2 875 2,875 11,248 Telekom Hungary 90,000 61,397 Fixed line revenues down by 5% 62,188 60,000 higher revenues from TV services and equipment sales partly compensating for Energy voice r
Slide 14: Hungary – Fixed voice market
Hungary – Fixed voice market T l k H Telekom Hungary fifixedd voice i subscribers b ib Subscribers 2,000,000 -4% 1,604,035 1 544 831 1,544,831 1,500,000 Market trends 1,000,000 significant reduction in fixed voice churn due to the retention benefit of: VoCa 500,000 • Hoppá package VoIP PSTN • 2Pla
Slide 15: Hungary – Energy retail
Hungary – Energy retail Gas and electricity points of delivery (POD) PODs 160,000 147,845 126,017 Market trends 120 000 120,000 Gas Electricity soft launch in 2010, nationwide from April 87,819 2012 80,000 61,516 customers receive discounts of 3-8% on 35 262 35,262 their energy bill depending on
Slide 16: Hungary – Fixed broadband and TV market
Hungary -- Fixed broadband and TV market T-Home fixed broadband subscriber breakdown Subscribers 1,000,000 +3% Market trends 851,380 874,864 874 864 3.7% 4.8% 750,000 broadband market growth driven by cable and 25.0% 28.1% fiber, while ADSL is slightly decreasing 500,000 , internet service pport
Slide 17: Hungary – Mobile market
Hungary – Mobile market T-Mobile smartphone penetration % of total handsets Market trends 35 % 31.3 % improving customer mix: y-o-y y o y increase in 30 % postpaid ratio to 47% from 46% 25 % 18.4 % smartphone sales reached 70% in 2012 20 % 15 % broadband subscription attach rate at ca. 80% 10
Slide 18: T-Systems Hungary – Financial performance
T-Systems Hungary – Financial performance Revenues HUF million -3% T-Systems Hungary 40,000 37,161 36,089 Falling voice and data revenues 30,000 57.2% lower usage on fixed voice and data 64.7% networks 20,000 continued pressure on tariff levels 22.7% SI/IT 10,000 19.6% 10% increase in SI/IT reve
Slide 19: Macedonia – Financial performance
Macedonia – Financial performance Revenues Macedonia HUF million -17% Significant FX impact: HUF strengthened by 6.9% 20,000 18,989 Q4-o-Q4 against MKD 13.0% 15 830 15,830 15,000 Mobile revenues under pressure 13.2% 39.5% strong price competition 37.6% 10,000 MOU up due to increasing volume of 1
Slide 20: Montenegro – Financial performance
Montenegro – Financial performance Revenues Montenegro HUF million Significant FX impact: HUF strengthened by 6.9% 10,000 -8% Q4-o-Q4 against EUR 88,447 447 8,000 11.6% 7,781 Competitive mobile market 13.7% 32.4% unfavorable economic environment put 6,000 29.8% pressure on retail voice revenues 4
Slide 21: Financials
Financials 21
Slide 22: Magyar Telekom – Consolidated Income Statement
Magyar Telekom – Consolidated Income Statement HUF million 4Q 2011 4Q 2012 Change Mobile revenues 80 349 78 662 -2.1% Fixed line revenues 60 927 56 036 -8 0% -8.0% System Integration/Information Technology revenues 15 273 18 927 23.9% Revenue from Energy Services 2 875 11 248 Revenues 159 424 164 87
Slide 23: Magyar Telekom - Consolidated Balance Sheet
Magyar Telekom - Consolidated Balance Sheet HUF million Dec 31, 2011 Dec 31, 2012 Change Current assets 220 396 215 923 -2.0% -2 0% Cash and cash equivalents 14 451 15 211 5.3% Other current financial assets 65 286 53 966 -17.3% Non current assets 877 632 841 921 -4.1% Property plant and equipment -
Slide 24: Magyar Telekom - Consolidated Cashflow Statement
Magyar Telekom - Consolidated Cashflow Statement HUF million Dec 31, 2011 Dec 31, 2012 Change Net cash generated from operating activities 168 781 145 227 -14.0% Investments in tangible and intangible assets (83 796) (103 298) 23.3% Adjustments to cash purchases 3 722 6 684 79.6% Purchase of subsidi
Slide 25: For further questions please contact the IR department
For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0424 Fax: +36 1 458-0443 e-mail: investor.relations@telekom.hu Abbreviations: 3G: third generation, 4G: fourth generation, ARPU: average revenue per user, BB: broadband, CUG: closed user group, HQ: headquarte